What is the minimum net owned funds requirement for Asset reconstruction companies as per SARFAESI Act?

An asset reconstruction company is a special type of financial institution that buys the debtors of the bank at a mutually agreed value and attempts to recover the debts or associated securities by itself. The asset reconstruction companies or ARCs are registered under the RBI and regulated under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI Act, 2002). The business of asset reconstruction or securitisation may be commenced only after obtaining a registration certificate under Section 3 of the SARFAESI Act, 2002 . The main requirement in this regard is that the ‘net owned funds’ as prescribed in the RBI Act should be Rs. 100 crore or more.